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Economic Globalization study Guide
Market Economy
Market economy runs on competition and trading.
Planned Economy
Planned economy is a government run economy the government sets the prices, theirs social programs, such as health care.
Mixed Economy
mixed is between planned and market, Canada is a mixed because we have social programs but we also run on competition.
Outsourcing
To transfer the management of an entire business function to a third-party service provider. the positive impact is that the company earns profit and people in the developing country are getting a job. The negative impact is that the people in the developed country lose jobs.
WTO
World Trade Organization, replaced GATT, deals with rules of trade between nations, The goal is to help producers of goods and services, exporters, and importers conduct their business. Most people in the third world nations cannot afford to buy the medicine or other products that come to these nations because the WTO is charging to much for these useful products but charges very little for other products putting local farmers out of business.
NAFTA
North American Free Trade Agreement it is made to resolve trade disputes between national industries and/or governments in a timely and impartial manner.
EU
European Union, 27 member states, The first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflictThe first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflict
GATT
General Agreement on Tariffs and Trade, was made to liberalize world trade, it was later on replaced by the WTO
IMF
International Monetary Fund. It is set up to stabilize foreign exchange currencies. Working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
World Bank
An international banking organization made to give loans to nations in need of money. When countries get the loan they don't pay back the loan itself but the interest the World Bank puts on it.
Sustainability
Exploiting natural resources without destroying the ecological balance of an area.
Tariffs
A tax by the government on imported goods. Governments use this so people can buy products made in that country.
Subsidies
Money given by the government to a person or company to help them sell their product much cheaper and still be successful.
Protectionism
The system of imposing duties on imports into a country in order to protect domestic industries. Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local businesses and jobs from foreign competition. Typical methods of protectionism are import tariffs, quotas, subsidies or tax cuts to local businesses and direct state intervention.
Trade Liberalization
No government involvement (no tariffs) on imported goods or taxes.
John Keynes
Government involvement, He believed the government should save during a boom and spend during a bust. so the government would spend the economy out of depression.
Frederich Hayek
No government involvement.
Adam Smith
No government involvement.
Transnational Corporations
A business organization operating in a number of countries.
Developed Countries
A developed country usually has an economic system based on continuous, self-sustaining economic growth, the wealthiest nations in the world, including Western Europe, the United States, Canada, Japan, Australia, and New Zealand, A country whose per capita income is high by world standards and a high quality of life.
Developing Countries
A poor agricultural country that is seeking to become more advanced economically and socially and a low quality of life.
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change, aimed at fighting global warming. countries do now have to fallow it.
Competition
Lower prices (People), Better quality (People), More choices (People), Efficiency (Company), innovation (company)
Standard Of Living
How much money you have.
Quality Of Life
What is available to you.